<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the quarterly period ended June 30, 2003

                                       or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the transition period from ____________________to________________________

Commission File number: 0-22260

                        CAMPBELL ALTERNATIVE ASSET TRUST
                        --------------------------------
               (Exact name of registrant as specified in charter)

            Delaware                                   52-1823554
     ----------------------               ----------------------------------
     (State of Organization)             (IRS Employer Identification Number)

                              Court Towers Building
                          210 West Pennsylvania Avenue,
                            Baltimore, Maryland 21204
                            -------------------------
          (Address of principal executive offices, including zip code)

                                 (410) 296-3301
                                 --------------
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days.

Yes [X]      No [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2)

Yes [ ]      No [X]

                            Total number of Pages: 26

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                PAGE
                                                                                                                ----
<S>                                                                                                             <C>
PART I - FINANCIAL INFORMATION

             Item 1.    Financial Statements

                        Statements of Financial Condition as of June 30, 2003 (Unaudited)
                        and December 31, 2002 (Audited)                                                           3

                        Condensed Schedule of Investments as of June 30, 2003 (Unaudited)                         4

                        Statements of Operations for the Three Months and Six Months Ended
                        June 30, 2003 and 2002 (Unaudited)                                                        5

                        Statements of Cash Flows for the Six Months Ended
                        June 30, 2003 and 2002 (Unaudited)                                                        6

                        Statements of Changes in Partners' Capital (Net Asset Value)
                        for the Six Months Ended June 30, 2003 and 2002 (Unaudited)                               7

                        Notes to Financial Statements (Unaudited)                                                 8

             Item 2.    Management's Discussion and Analysis of Financial Condition and
                        Results of Operations                                                                    14

             Item 3.    Quantitative and Qualitative Disclosure About Market Risk                                18

             Item 4.    Controls and Procedures                                                                  24

PART II - OTHER INFORMATION                                                                                      25

SIGNATURES                                                                                                       26

EXHIBIT INDEX                                                                                                   E-1

EXHIBIT 31.01 Certification by Chief Executive Officer                                                          E-2

EXHIBIT 31.02 Certification of Chief Financial Officer                                                          E-4

EXHIBIT 32.01 Certification by Chief Executive Officer                                                          E-6

EXHIBIT 32.02 Certification of Chief Financial Officer                                                          E-7
</TABLE>

                                      -2-

<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                        STATEMENTS OF FINANCIAL CONDITION
            June 30, 2003 (Unaudited) and December 31, 2002 (Audited)

<TABLE>
<CAPTION>
                                                                                      June 30,             December 31,
                                                                                        2003                   2002
                                                                                        ----                   ----
<S>                                                                                 <C>                    <C>
ASSETS
    Equity in broker trading accounts
       Cash                                                                         $   1,312,298          $  1,776,218
       United States government securities                                             20,977,914            15,979,020
       Unrealized gain (loss) on open futures contracts                                  (476,504)              396,978
                                                                                    -------------          ------------

              Deposits with broker                                                     21,813,708            18,152,216

    Cash                                                                                9,417,391             8,288,433
    Unrealized gain on open forward contracts                                             408,406               371,462
    Subscriptions receivable                                                                    0             7,712,354
                                                                                    -------------          ------------

              Total assets                                                          $  31,639,505          $ 34,524,465
                                                                                    =============          ============

LIABILITIES
    Accounts payable                                                                $      18,444          $     22,026
    Brokerage fee                                                                          58,250                66,966
    Performance fee                                                                       197,548                     0
    Offering costs payable                                                                 15,621                19,170
    Redemptions payable                                                                   152,733             1,561,825
                                                                                    -------------          ------------

              Total liabilities                                                           442,596             1,669,987
                                                                                    -------------          ------------

UNITHOLDERS' CAPITAL (NET ASSET VALUE)
    Managing Owner - 1,413.580 and 6,000.000
       units outstanding at June 30, 2003 and
       December 31, 2002                                                                1,847,295             6,747,480
    Other Unitholders - 22,458.773 and 23,214.940
       units outstanding at June 30, 2003 and
       December 31, 2002                                                               29,349,614            26,106,998
                                                                                    -------------          ------------

              Total unitholders' capital
                 (Net Asset Value)                                                     31,196,909            32,854,478
                                                                                    -------------          ------------

                                                                                    $  31,639,505          $ 34,524,465
                                                                                    =============          ============
</TABLE>

                             See accompanying notes.

                                      -3-

<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                        CONDENSED SCHEDULE OF INVESTMENTS
                                  June 30, 2003
                                   (Unaudited)

<TABLE>
<CAPTION>
UNITED STATES GOVERNMENT SECURITIES

                                                                                                       % of Net
Face Value                Description                                                Value            Asset Value
----------                -----------                                                -----            -----------
<S>               <C>                                                            <C>                  <C>
$15,500,000       U.S. Treasury Bill, 8/07/03                                    $ 15,483,113            49.63%
  3,000,000       U.S. Treasury Bill, 7/10/03                                       2,999,179             9.61%
  2,500,000       U.S. Treasury Bill, 9/04/03                                       2,495,622             8.00%
                                                                                 ------------            -----
                  TOTAL UNITED STATES GOVERNMENT SECURITIES
                      (COST, INCLUDING ACCRUED INTEREST, - $20,977,914)          $ 20,977,914            67.24%
                                                                                 ============            =====

<CAPTION>
LONG FUTURES CONTRACTS

                                                                                                       % of Net
                          Description                                                Value            Asset Value
                          -----------                                                -----            -----------
                  Energy                                                         $     39,164            0.13 %
                  Metals                                                              (93,646)          (0.30)%
                  Stock index                                                        (108,457)          (0.35)%
                  Short-term interest rate                                           (110,607)          (0.35)%
                  Long-term interest rate                                            (202,130)          (0.65)%
                                                                                 ------------           -----
                  TOTAL LONG FUTURES CONTRACTS                                   $   (475,676)          (1.52)%
                                                                                 ------------           -----

<CAPTION>
SHORT FUTURES CONTRACTS

                                                                                                       % of Net
                          Description                                                Value            Asset Value
                          -----------                                                -----            -----------
                  Energy                                                         $     (1,740)            0.00%
                  Metals                                                                  912             0.00%
                                                                                 ------------            -----
                  TOTAL SHORT FUTURES CONTRACTS                                  $      (828)             0.00%
                                                                                 ------------            -----
                  TOTAL FUTURES CONTRACTS                                        $   (476,504)           (1.52)%
                                                                                 ============            =====

<CAPTION>
FORWARD CURRENCY CONTRACTS

                                                                                                       % of Net
                          Description                                                Value            Asset Value
                          -----------                                                -----            -----------
                  Various long forward currency contracts                        $   (960,817)           (3.08)%
                  Various short forward currency contracts                          1,369,223             4.39 %
                                                                                 ------------            -----
                  TOTAL FORWARD CURRENCY CONTRACTS                               $    408,406             1.31 %
                                                                                 ============            =====
</TABLE>

                             See accompanying notes.

                                      -4-
<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                            STATEMENTS OF OPERATIONS
                   For the Three Months and the Six Months
                          Ended June 30, 2003 and 2002
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                Three Months                        Six Months
                                                                   Ended                               Ended
                                                                  June 30,                            June 30,
                                                           2003             2002              2003             2002
                                                           ----             ----              ----             ----
<S>                                                    <C>               <C>              <C>               <C>
INCOME
    Futures trading gains (losses)
       Realized                                        $   538,951       $  (271,188)     $ 3,412,740       $  (955,979)
       Change in unrealized                               (527,992)           44,611         (873,482)          855,627
                                                       -----------       -----------      -----------       -----------

              Gain (loss) from futures trading              10,959          (226,577)       2,539,258          (100,352)
                                                       -----------       -----------      -----------       -----------

    Forward trading gains (losses)
       Realized                                          1,350,399         1,543,821        4,205,499         1,425,121
       Change in unrealized                                499,756           502,011           36,944          (212,955)
                                                       -----------       -----------      -----------       -----------

              Gain from forward trading                  1,850,155         2,045,832        4,242,443         1,212,166
                                                       -----------       -----------      -----------       -----------

    Interest income                                         87,733            84,713          186,153           162,620
                                                       -----------       -----------      -----------       -----------

              Total income                               1,948,847         1,903,968        6,967,854         1,274,434
                                                       -----------       -----------      -----------       -----------

EXPENSES
    Brokerage fee                                          244,831           193,381          516,993           356,738
    Performance fee                                        305,247                 0          967,330                 0
    Operating expenses                                      22,425            18,560           34,514            28,092
                                                       -----------       -----------      -----------       -----------

              Total expenses                               572,503           211,941        1,518,837           384,830
                                                       -----------       -----------      -----------       -----------

              NET INCOME                               $ 1,376,344       $ 1,692,027      $ 5,449,017       $   889,604
                                                       ===========       ===========      ===========       ===========

NET INCOME PER MANAGING
OWNER AND OTHER UNITHOLDER
UNIT
    (based on weighted average number of
    units outstanding during the period)               $     57.11       $     75.69      $    210.71       $     41.97
                                                       ===========       ===========      ===========       ===========

INCREASE IN NET ASSET
    VALUE PER MANAGING OWNER
    AND OTHER UNITHOLDER UNIT                          $     53.66       $     70.66      $    182.24       $     28.81
                                                       ===========       ===========      ===========       ===========
</TABLE>

                             See accompanying notes.

                                      -5-

<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                            STATEMENTS OF CASH FLOWS
                 For the Six Months Ended June 30, 2003 and 2002
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                        2003                  2002
                                                                                        ----                  ----
<S>                                                                                 <C>                   <C>
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES
    Net income                                                                      $   5,449,017         $     889,604
       Adjustments to reconcile net income to net cash from
          (for) operating activities
              Net change in unrealized                                                    836,538              (642,672)
              Increase in accounts payable and accrued expenses                           185,250                20,995
              Net (purchases) of investments in United States
                 government securities                                                 (4,998,894)           (1,497,301)
                                                                                    -------------         -------------

                    Net cash from (for) operating activities                            1,471,911            (1,229,374)
                                                                                    -------------         -------------
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES
    Addition of units                                                                   1,226,565             4,638,184
    Decrease in subscriptions receivable                                                7,712,354               514,071
    Redemption of units                                                                (8,181,970)             (142,848)
    Increase (decrease) in redemptions payable                                         (1,409,092)               30,347
    Offering costs charged                                                               (151,181)              (90,368)
    Increase (decrease) in offering costs payable                                          (3,549)                4,008
                                                                                    -------------         -------------

                    Net cash from (for) financing activities                             (806,873)            4,953,394
                                                                                    -------------         -------------

Net increase in cash                                                                      665,038             3,724,020

CASH
    Beginning of period                                                                10,064,651             8,789,120
                                                                                    -------------         -------------

    End of period                                                                   $  10,729,689         $  12,513,140
                                                                                    =============         =============

End of period cash consists of:
    Cash in broker trading accounts                                                 $   1,312,298         $   1,685,566
    Cash                                                                                9,417,391            10,827,574
                                                                                    -------------         -------------

                    Total end of period cash                                        $  10,729,689         $  12,513,140
                                                                                    =============         =============
</TABLE>

                             See accompanying notes.

                                      -6-

<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
         STATEMENTS OF CHANGES IN UNITHOLDERS' CAPITAL (NET ASSET VALUE)
                 For the Six Months Ended June 30, 2003 and 2002
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                        Unitholders' Capital
                                       -------------------------------------------------------------------------------------------
                                             Managing Owner               Other Unitholders                     Total
                                       --------------------------   -----------------------------     ----------------------------
                                         Units          Amount         Units           Amount           Units           Amount
                                       ----------   -------------   ------------   --------------     ----------     -------------
<S>                                    <C>          <C>             <C>            <C>                <C>            <C>
SIX MONTHS ENDED JUNE 30, 2003

Balances at
    December 31, 2002                   6,000.000   $   6,747,480     23,214.940   $   26,106,998     29,214.940     $  32,854,478

Net income for the six months
    ended June 30, 2003                                 1,116,946                       4,332,071                        5,449,017

Addition                                    0.000               0        978.651        1,226,565        978.651         1,226,565

Redemptions                            (4,586.420)     (6,000,000)    (1,734.818)      (2,181,970)    (6,321.238)       (8,181,970)

Offering costs                                            (17,131)                       (134,050)                        (151,181)
                                       ----------   -------------   ------------   --------------     ----------     -------------
Balances at
    June 30, 2003                       1,413.580   $   1,847,295     22,458.773   $   29,349,614     23,872.353     $  31,196,909
                                       ==========   =============   ============   ==============     ==========     =============

SIX MONTHS ENDED JUNE 30, 2002

Balances at
    December 31, 2001                   6,000.000   $   5,841,866     13,016.882   $   12,673,815     19,016.882     $  18,515,681

Net income for the six months
    ended June 30, 2002                                   198,430                         691,174                          889,604

Additions                                   0.000               0      4,889.177        4,638,184      4,889.177         4,638,184

Redemptions                                 0.000               0       (154.076)        (142,848)      (154.076)         (142,848)

Offering costs                                            (25,577)                        (64,791)                         (90,368)
                                       ----------   -------------   ------------   --------------     ----------     -------------
Balances at
    June 30, 2002                       6,000.000   $   6,014,719     17,751.983   $   17,795,534     23,751.983     $  23,810,253
                                       ==========   =============   ============   ==============     ==========     =============
</TABLE>

<TABLE>
<CAPTION>
Net Asset Value Per Managing Owner and Other Unitholder Unit
------------------------------------------------------------
 June 30,      December 31,     June 30,       December 31,
   2003           2002            2002            2001
   ----           ----            ----            ----
<S>            <C>             <C>             <C>
$  1,306.82    $   1,124.58    $ 1,002.45      $    973.64
===========    ============    ==========      ===========
</TABLE>

                             See accompanying notes.

                                      -7-
<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         A.       General Description of the Trust

                  Campbell Alternative Asset Trust (the Trust) is a Delaware
                  statutory trust which operates as a commodity investment pool.
                  The Trust was formed on May 3, 2000 and commenced trading on
                  October 1, 2001. The Trust engages in the speculative trading
                  of futures contracts and forward contracts.

                  As of December 31, 2002, units are no longer offered to the
                  public, but are offered exclusively for sale to the Campbell &
                  Company, Inc. 401(K) Plan (the 401(K) Plan).

         B.       Regulation

                  As a registrant with the Securities and Exchange Commission,
                  the Trust is subject to the regulatory requirements under the
                  Securities Act of 1933 and the Securities Exchange Act of
                  1934. As a commodity investment pool, the Trust is subject to
                  the regulations of the Commodity Futures Trading Commission,
                  an agency of the United States (U.S.) government which
                  regulates most aspects of the commodity futures industry;
                  rules of the National Futures Association, an industry
                  self-regulatory organization; and the requirements of the
                  various commodity exchanges where the Trust executes
                  transactions. Additionally, the Trust is subject to the
                  requirements of futures commission merchants (brokers) and
                  interbank market makers through which the Trust trades.

         C.       Method of Reporting

                  The Trust's financial statements are presented in accordance
                  with accounting principles generally accepted in the United
                  States of America, which require the use of certain estimates
                  made by the Trust's management. Transactions are accounted for
                  on the trade date. Gains or losses are realized when contracts
                  are liquidated. Unrealized gains and losses on open contracts
                  (the difference between contract trade price and market price)
                  are reported in the statement of financial condition as a net
                  gain or loss, as there exists a right of offset of unrealized
                  gains or losses in accordance with Financial Accounting
                  Standards Board Interpretation No. 39 - "Offsetting of Amounts
                  Related to Certain Contracts." Any change in net unrealized
                  gain or loss from the preceding period is reported in the
                  statement of operations. Brokerage commissions and other
                  trading fees paid directly to the broker are included in
                  "brokerage fee" and are charged to expense when contracts are
                  opened. United States government securities are stated at cost
                  plus accrued interest, which approximates market value.

                  For purposes of both financial reporting and calculation of
                  redemption value, Net Asset Value per unit is calculated by
                  dividing Net Asset Value by the number of units outstanding.

         D.       Income Taxes

                  The Trust prepares calendar year U.S. and applicable state
                  information tax returns and reports to the unitholders their
                  allocable shares of the Trust's income, expenses and trading
                  gains or losses.

                                      -8-

<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)

Note 1.  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         E.       Offering Costs

                  Campbell & Company, Inc. (Campbell & Company) has incurred all
                  costs in connection with the initial and continuous offering
                  of units of the Trust (offering costs). Offering costs are
                  charged to the Trust at a monthly rate of 1/12 of 0.9% (0.9%
                  annualized) of the Trust's month-end net asset value (as
                  defined in the Amended and Restated Declaration of Trust and
                  Trust Agreement) until such amounts are fully reimbursed. Such
                  amounts are charged directly to unitholders' capital. The
                  Trust is only liable for payment of offering costs on a
                  monthly basis. At June 30, 2003, the Trust reflects a
                  liability in the statement of financial condition for offering
                  costs payable to Campbell & Company of $15,621.

                  The offering costs for which Campbell & Company are being
                  reimbursed relate to the offering of units of the Trust to all
                  unitholders except the 401(K) Plan. Therefore, Campbell &
                  Company rebates to the 401(K) Plan the offering costs charged
                  to the 401(K) Plan. All such rebates are made by issuing
                  additional units to the 401(K) Plan.

                  If the Trust terminates prior to completion of payment to
                  Campbell & Company for the unreimbursed offering costs
                  incurred through the date of such termination, Campbell &
                  Company will not be entitled to any additional payments, and
                  the Trust will have no further obligation to Campbell &
                  Company. At June 30, 2003, the amount of unreimbursed offering
                  costs incurred by Campbell & Company is $1,063,064.

         F.       Foreign Currency Transactions

                  The Trust's functional currency is the U.S. dollar; however,
                  it transacts business in currencies other than the U.S.
                  dollar. Assets and liabilities denominated in currencies other
                  than the U.S. dollar are translated into U.S. dollars at the
                  rates in effect at the date of the statement of financial
                  condition. Income and expense items denominated in currencies
                  other than the U.S. dollar are translated into U.S. dollars at
                  the rates in effect during the period. Gains and losses
                  resulting from the translation to U.S. dollars are reported in
                  income currently.

Note 2.  MANAGING OWNER AND COMMODITY TRADING ADVISOR

         The managing owner of the Trust is Campbell & Company, which conducts
         and manages the business of the Trust. Campbell & Company is also the
         commodity trading advisor of the Trust. The Amended and Restated
         Declaration of Trust and Trust Agreement requires Campbell & Company to
         maintain a capital account equal to 1% of the total capital accounts of
         the Trust. Additionally, Campbell & Company is required by the Amended
         and Restated Declaration of Trust and Trust Agreement to maintain a net
         worth of not less than $1,000,000.

         The Trust pays a monthly brokerage fee of 1/12 of 2.85% (2.85%
         annualized) of month-end net assets to Campbell & Company and
         approximately $6 per round turn to the broker for execution and
         clearing costs. Such costs are limited to 3.5% of average month-end net
         assets per year. From the 2.85% fee, a portion (0.35%) is used to
         compensate selling agents for administrative services and a portion
         (2.5%) is retained by Campbell & Company for trading and management
         services rendered. During the six months ended June 30, 2003 and 2002,
         the amounts paid directly to the broker were $38,253 and $70,574,
         respectively. During the three months ended June 30, 2003 and 2002, the
         amounts paid directly to the broker were $18,225 and $42,908,
         respectively

                                      -9-

<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)

Note 2.  MANAGING OWNER AND COMMODITY TRADING ADVISOR (CONTINUED)

         Campbell & Company is also paid a performance fee equal to 20% of New
         Appreciation (as defined) calculated as of the end of each calendar
         quarter and upon redemption of units.

         Effective January 1, 2003, Campbell & Company rebates to the 401(K)
         Plan the brokerage fee and the performance fee applicable to the 401(K)
         Plan. All such rebates are made by issuing additional units to the
         401(K) Plan.

Note 3.  TRUSTEE

         The trustee of the Trust is Wachovia Trust Company, National
         Association, a national banking association. The trustee has delegated
         to the managing owner the duty and authority to manage the business and
         affairs of the Trust and has only nominal duties and liabilities with
         respect to the Trust.

Note 4.  DEPOSITS WITH BROKER

         The Trust deposits assets with a broker subject to Commodity Futures
         Trading Commission regulations and various exchange and broker
         requirements. Margin requirements are satisfied by the deposit of U.S.
         Treasury bills and cash with such broker. The Trust earns interest
         income on its assets deposited with the broker.

Note 5.  OPERATING EXPENSES

         Operating expenses of the Trust are restricted by the Amended and
         Restated Declaration of Trust and Trust Agreement to .40% per annum of
         the average month-end Net Asset Value of the Trust.

Note 6.  SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS

         Investments in the Trust are made by subscription agreement, subject to
         acceptance by Campbell & Company. The subscriptions receivable at
         December 31, 2002 represent subscriptions from the 401(K) Plan and were
         received by the Trust on or before January 9, 2003.

         The Trust is not required to make distributions, but may do so at the
         sole discretion of Campbell & Company. A unitholder may request and
         receive redemption of units owned, subject to restrictions in the
         Amended and Restated Declaration of Trust and Trust Agreement.

Note 7.  TRADING ACTIVITIES AND RELATED RISKS

         The Trust engages in the speculative trading of U.S. and foreign
         futures contracts and forward contracts (collectively, "derivatives").
         The Trust is exposed to both market risk, the risk arising from changes
         in the market value of the contracts, and credit risk, the risk of
         failure by another party to perform according to the terms of a
         contract.

                                      -10-

<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)

Note 7.  TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)

         Purchase and sale of futures contracts requires margin deposits with
         the broker. Additional deposits may be necessary for any loss on
         contract value. The Commodity Exchange Act requires a broker to
         segregate all customer transactions and assets from such broker's
         proprietary activities. A customer's cash and other property (for
         example, U.S. Treasury bills) deposited with a broker are considered
         commingled with all other customer funds subject to the broker's
         segregation requirements. In the event of a broker's insolvency,
         recovery may be limited to a pro rata share of segregated funds
         available. It is possible that the recovered amount could be less than
         total cash and other property deposited.

         The amount of required margin and good faith deposits with the broker
         and interbank market makers usually range from 10% to 30% of Net Asset
         Value. The market value of securities held by the broker at June 30,
         2003 and December 31, 2002 were $20,977,914 and $15,979,020,
         respectively, which equals 67% and 49% of Net Asset Value,
         respectively. The cash deposited with interbank market makers at June
         30, 2003 and December 31, 2002 were $9,408,487 and $8,287,188,
         respectively, which equals 30% and 25% of Net Asset Value,
         respectively.

         The Trust trades forward contracts in unregulated markets between
         principals and assumes the risk of loss from counterparty
         nonperformance. Accordingly, the risks associated with forward
         contracts are generally greater than those associated with exchange
         traded contracts because of the greater risk of counterparty default.
         Additionally, the trading of forward contracts typically involves
         delayed cash settlement.

         The Trust has a substantial portion of its assets on deposit with
         financial institutions. In the event of a financial institution's
         insolvency, recovery of Trust assets on deposit may be limited to
         account insurance or other protection afforded such deposits.

         For derivatives, risks arise from changes in the market value of the
         contracts. Theoretically, the Trust is exposed to a market risk equal
         to the notional contract value of futures and forward contracts
         purchased and unlimited liability on such contracts sold short.

         The unrealized gain (loss) on open futures and forward contracts is
         comprised of the following:

<TABLE>
<CAPTION>
                                              Futures Contracts                    Forward Contracts
                                              (exchange traded)                  (non-exchange traded)
                                         June 30,         December 31,        June 30,         December 31,
                                           2003               2002              2003               2002
                                           ----               ----              ----               ----
<S>                                    <C>               <C>                <C>                <C>
         Gross unrealized gains        $    111,199      $    573,482       $  2,900,765       $  2,292,568
         Gross unrealized losses           (587,703)         (176,504)        (2,492,359)        (1,921,106)
                                       ------------      ------------       ------------       ------------
         Net unrealized gain (loss)    $   (476,504)     $    396,978       $    408,406       $    371,462
                                       ============      ============       ============       ============
</TABLE>

         Open contracts generally mature within three months; as of June 30,
         2003, the latest maturity date for open futures contracts is March
         2004, and the latest maturity date for open forward contracts is
         September 2003. However, the Trust intends to close all contracts prior
         to maturity.

                                      -11-

<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)

Note 7.  TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)

         Campbell & Company has established procedures to actively monitor
         market risk and minimize credit risk, although there can be no
         assurance that it will, in fact, succeed in doing so. Campbell &
         Company's basic market risk control procedures consist of continuously
         monitoring open positions, diversification of the portfolio and
         maintenance of a margin-to-equity ratio that rarely exceeds 30%.
         Campbell & Company seeks to minimize credit risk primarily by
         depositing and maintaining the Trust's assets at financial institutions
         and brokers which Campbell & Company believes to be creditworthy. The
         unitholders bear the risk of loss only to the extent of the market
         value of their respective investments and, in certain specific
         circumstances, distributions and redemptions received.

Note 8.  INTERIM FINANCIAL STATEMENTS

         The statement of financial condition as of June 30, 2003, including the
         June 30, 2003 condensed schedule of investments, the statements of
         operations for the three months and six months ended June 30, 2003 and
         2002, and the statements of cash flows and changes in unitholders'
         capital (Net Asset Value) for the six months ended June 30, 2003 and
         2002 are unaudited. In the opinion of management, such financial
         statements reflect all adjustments, which were of a normal and
         recurring nature, necessary for a fair presentation of financial
         position as of June 30, 2003, the results of operations for the three
         months and six months ended June 30, 2003 and 2002, and cash flows for
         the six months ended June 30, 2003 and 2002.

                                      -12-

<PAGE>

                        CAMPBELL ALTERNATIVE ASSET TRUST
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)
                                   (Unaudited)

Note 9.  FINANCIAL HIGHLIGHTS

         The following information presents per unit operating performance data
         and other supplemental financial data for the three months and six
         months ended June 30, 2003 and 2002. This information has been derived
         from information presented in the financial statements.

<TABLE>
<CAPTION>
                                                             Three months ended           Six months ended
                                                                  June 30,                    June 30,
                                                            2003          2002          2003           2002
                                                         (Unaudited)   (Unaudited)   (Unaudited)    (Unaudited)
                                                         -----------   -----------   -----------    -----------
<S>                                                      <C>           <C>           <C>            <C>
PER UNIT PERFORMANCE
(for a unit outstanding throughout the entire period)
Net asset value per unit at beginning of period          $ 1,253.16    $   931.79     $ 1,124.58    $   973.64
                                                         ----------    ----------     ----------    ----------
Income from operations:
       Net realized and change in unrealized gain
           from trading (2),(3)                               75.99         76.56         238.15         40.22
       Expenses net of interest income (1),(3)               (19.36)        (3.77)        (50.06)        (7.15)
                                                         ----------    ----------     ----------    ----------
              Total income from operations                    56.63         72.79         188.09         33.07
                                                         ----------    ----------     ----------    ----------
Offering costs (3)                                            (2.97)        (2.13)         (5.85)        (4.26)
                                                         ----------    ----------     ----------    ----------
Net asset value per unit at end of period                $ 1,306.82    $ 1,002.45     $ 1,306.82     $1,002.45
                                                         ==========    ==========     ==========    ==========
TOTAL RETURN (4)                                               4.28 %        7.58 %        16.21 %        2.96%
                                                         ==========    ==========     ==========    ==========
SUPPLEMENTAL DATA
Ratios to average net asset value:
       Expenses prior to performance fee (1),(5)              (3.21)%       (3.19)%        (3.20)%       (3.09)%
       Performance fee (5)                                    (3.93)%        0.00 %        (6.03)%        0.00%
                                                         ----------    ----------     ----------    ----------
              Total expenses (1),(5)                          (7.14)%       (3.19)%        (9.23)%       (3.09)%
                                                         ==========    ==========     ==========    ==========
       Expenses net of interest income (1),(5),(6)            (2.08)%       (1.59)%        (2.04)%       (1.49)%
                                                         ==========    ==========     ==========    ==========
</TABLE>

         Total returns are calculated based on the change in value of a unit
         during the period. An individual unitholder's total returns and ratios
         may vary from the above total returns and ratios based on the timing of
         additions and redemptions.

         ------------------
         (1)      Excludes brokerage commissions and other trading fees paid
                  directly to the broker.

         (2)      Includes brokerage commissions and other trading fees paid
                  directly to the broker.

         (3)      Expenses net of interest income per unit and offering costs
                  per unit are calculated by dividing the expenses net of
                  interest income and offering costs by the average number of
                  units outstanding during the period. The net realized and
                  change in unrealized gain from trading is a balancing amount
                  necessary to reconcile the change in net asset value per unit
                  with the other per unit information.

         (4)      Not annualized

         (5)      Annualized

         (6)      Excludes performance fee

                                      -13-

<PAGE>

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

Introduction

The offering of Campbell Alternative Asset Trust's (the "Trust") Units of
Beneficial Interest commenced on May 15, 2001, and the initial offering
terminated on September 30, 2001 with proceeds of $15,821,743. The continuing
offering period commenced immediately after the termination of the initial
offering period; additional subscriptions totaling $24,556,230 have been
accepted during the continuing offering period as of June 30, 2003. Redemptions
over the same time period total $17,560,911. The Trust commenced operations on
October 1, 2001.

As of December 31, 2002, units are no longer offered to the public, but are
offered exclusively for sale to the Campbell & Company, Inc. 401(K) Plan.

Capital Resources

The Trust will raise additional capital only through the sale of Units offered
pursuant to the continuing offering, and does not intend to raise any capital
through borrowing. Due to the nature of the Trust's business, it will make no
capital expenditures and will have no capital assets which are not operating
capital or assets.

Liquidity

Most United States commodity exchanges limit fluctuations in commodity futures
contracts prices during a single day by regulations referred to as "daily price
fluctuation limits" or "daily limits". During a single trading day, no trades
may be executed at prices beyond the daily limit. Once the price of a futures
contract has reached the daily limit for that day, positions in that contract
can neither be taken nor liquidated. Commodity futures prices have occasionally
moved to the daily limit for several consecutive days with little or no trading.
Similar occurrences could prevent the Trust from promptly liquidating
unfavorable positions and subject the Trust to substantial losses which could
exceed the margin initially committed to such trades. In addition, even if
commodity futures prices have not moved the daily limit, the Trust may not be
able to execute futures trades at favorable prices, if little trading in such
contracts is taking place. Other than these limitations on liquidity, which are
inherent in the Trust's commodity futures trading operations, the Trust's assets
are expected to be highly liquid.

RESULTS OF OPERATIONS

The return for the six months ended June 30, 2003 and 2002 was 16.21% and 2.96%,
respectively. Of the 2003 increase, approximately 20.84% was due to trading
gains (before commissions), approximately 0.58% was due interest income offset
by approximately 5.21% due to brokerage fees, performance fees, and operating
and offering costs borne by the Trust. An analysis of the 20.84% trading loss by
sector is as follows:

                                      -14-

<PAGE>

<TABLE>
<CAPTION>
  SECTOR                             % GAIN (LOSS)
  ------                             -------------
<S>                                  <C>
Currencies                              13.79%

Energy                                   4.20

Interest Rates                           3.94

Agricultural                             0.02

Metals                                  (0.51)

Stock Indices                           (0.60)
                                        -----

                                        20.84%
                                        =====
</TABLE>

The long-term trends that created so much opportunity for the Trust in 2002
continued in January 2003. Profits were earned in every sector other than stock
indices. However, the environment was one where a single event, the prospect of
war with Iraq, was driving the Trust's whole portfolio. While the Trust's
systematic and disciplined trading strategies continued to keep it engaged,
leverage was subsequently decreased to protect against significant losses which
could result from potential sharp and extended reversals in core positions.

The Trust was positive again in February with metals being the only negative
sector. Strong momentum in energy, fixed income, currencies and stock indices
continued, largely as a result of the troubled global geopolitical outlook. In
order to mitigate the risk of potential sharp reversals in trends, the Trust
maintained a lower-than-normal level of leverage during the month.

The long awaited market reversal occurred in March. Initially energy, precious
metals and fixed income markets all sold off sharply, while equities and the
U.S. Dollar rallied. Several days into this correction, these markets all sold
off suddenly, as hopes of a quick victory in Iraq subsided. With significantly
reduced leverage, the losses the Trust sustained were relatively modest, giving
the Trust a positive first quarter.

In April, the Trust's leverage was returned to a more normal level, but the
portfolio was not fully engaged in many markets due to the lack of strong
trends. Many markets had calmed significantly at this time, but uncertainty was
still prevalent in global markets due to the many unresolved geopolitical
issues. A strong performance in the currencies sector was partially offset by
negative performances in the metals and stock index sectors.

In May, the uncertainty that remained in April dominated the markets the Trust
trades and led to another positive month. While corporate earnings looked
stronger, unemployment, overcapacity and the ongoing threat of terrorism still
loomed large over the global financial markets. The US dollar weakened further
against the other major currencies despite the concern expressed by the United
States' trade partners over the impact this would have on global trade. Interest
rates were the best performing sector for the Trust particularly at the long end
of the yield curve, where higher prices reflected lower rates. Currency cross
rates were also positive, while losses in the energy, stock index and currency
sectors offset some of those gains.

With a small negative result for June, the Trust finished the first half of 2003
with a solid double-digit return. Profits for the month were earned in the
currency sector while long-term interest rates lost

                                      -15-

<PAGE>

value as yield curves steepened, particularly the Japanese government bond.
Short-term interest rates and stock index sectors contributed modest gains for
the month, while the energy, metals and currency cross-rates contributed small
losses. While the global economy was looking better than it had for several
years, many substantive uncertainties remained.

2002

The return for the six months ended June 30, 2002 was 2.96%. Of the increase,
approximately 4.49% was due to trading gains (before commissions) and
approximately 0.80% was due to interest income, offset by approximately 2.33%
due to brokerage fees, performance fees, and operating and offering costs borne
by the Trust. An analysis of the 4.49% trading gain by sector is as follows:

<TABLE>
<CAPTION>
  SECTOR                     % GAIN (LOSS)
  ------                     -------------
<S>                          <C>
Currencies                     5.42 %

Interest Rates                 1.29

Agricultural                  (0.12)

Metals                        (0.18)

Energy                        (0.28)

Stock Indices                 (1.64)
                              -----

                               4.49%
                              =====
</TABLE>

During January, the Enron and Global Crossing bankruptcies took a toll on the
U.S. equities markets that were already under pressure and resulted in a
stumbling start to the New Year, as layoffs, earnings restatements and revenue
declines continued to dominate the business news. Internationally, the Japanese
economy continued to deteriorate, while the full extent of any Argentinean
contagion is yet to be acknowledged in Brazil or other parts of South America.
On the positive side, U.S. consumer spending continued to be robust. The Trust
posted a small loss for January, largely as a result of volatility in the global
currency markets. Energy and short stock index positions contributed small
gains.

The high market volatility in January continued into February. Further Enron
revelations radiated concern about the accounting practices of other large
companies and caused the equity markets to decline early in the month. Sentiment
reversed abruptly on positive economic news on home sales, manufacturing and
consumer spending. The Trust's performance was negative in February with losses
in energy, stock indices and long-term interest rates partially offset by gains
in short-term interest rates.

March was a mixed month in which positive performance in the energy and interest
rate sectors were more than offset by losses in stock indices and currencies,
which make up a substantial part of the Trust's portfolio. The Japanese Yen
produced the largest loss when it rallied in reaction to Bank of Japan
intervention in preparation for their March 31st fiscal year-end as the Trust
was maintaining a short position. Energy was the strongest performing sector
profiting from long positions in crude oil and unleaded gas. The loss in the
stock indices sector came from short positions in the Nikkei and Hang Seng
indices as Asian equities rallied. The overall loss for the month occurred
independently of

                                      -16-

<PAGE>

the equity and bond markets demonstrating the volatility reducing effect of
blending assets whose returns are largely uncorrelated.

April was one of the most difficult trading months since the Trust began
trading. The Trust ended the month down over 4.5%. The fixed income sector was
whip-lashed as hopes of imminent economic recovery sputtered causing the
majority of the trading losses for the month. Broad-based selling of the three
leading US equity indices put them at their lowest levels since October 2001 and
contributed to the Trust's losses for the month. The energy sector was battered
by reports of unfolding events in both Venezuela and the Middle East. Many areas
of concern remain including continued instability in the Middle East, weak
corporate earnings, continued revelations of corporate accounting issues, fear
of a collapse in the residential real estate market, high energy costs and a
growing federal budget deficit due to lower tax receipts.

The month of May finally provided some trending opportunities that the Trust was
able to profit from. The currencies and interest rates sectors provided the
gains for the month, but these were offset by losses in the energy and stock
indices sectors. While the equities markets remained nervous, many alternative
investment strategies, including managed futures, were able to provide positive
returns.

Strong performance in the month of June contributed to a positive second quarter
and more than made up for losses during the beginning of the year. All major US
equity indices made new cycle lows as domestic and international investor
confidence was battered by reports of scandalous corporate leadership conduct.
The long awaited US economic recovery looked sluggish at best. In this troubled
environment, the US dollar lost ground against most major trading partners,
while interest rate futures rose and stock indices declined. These three sectors
contributed significantly to the profits in June, while small losses were
recorded in the metals and energy sectors.

OFF-BALANCE SHEET RISK

The term "off-balance sheet risk" refers to an unrecorded potential liability
that, even though it does not appear on the balance sheet, may result in future
obligation or loss. The Trust trades in futures, forward and swap contracts and
is therefore a party to financial instruments with elements of off-balance sheet
market and credit risk. In entering into these contracts there exists a risk to
the Trust, market risk, that such contracts may be significantly influenced by
market conditions, such as interest rate volatility, resulting in such contracts
being less valuable. If the markets should move against all of the futures
interests positions of the Trust at the same time, and if the Trust's trading
advisor was unable to offset futures interests positions of the Trust, the Trust
could lose all of its assets and the Unitholders would realize a 100% loss.
Campbell & Company, Inc., the managing owner (who also acts as trading advisor),
minimizes market risk through real-time monitoring of open positions,
diversification of the portfolio and maintenance of a margin-to-equity ratio
that rarely exceeds 30%.

In addition to market risk, in entering into futures, forward and swap contracts
there is a credit risk that a counterparty will not be able to meet its
obligations to the Trust. The counterparty for futures contracts traded in the
United States and on most foreign exchanges is the clearinghouse associated with
such exchange. In general, clearinghouses are backed by the corporate members of
the clearinghouse who are required to share any financial burden resulting from
the non-performance by one of their members and, as such, should significantly
reduce this credit risk. In cases where the

                                      -17-

<PAGE>

clearinghouse is not backed by the clearing members, like some foreign
exchanges, it is normally backed by a consortium of banks or other financial
institutions.

In the case of forward and swap contracts, which are traded on the interbank
market rather than on exchanges, the counterparty is generally a single bank or
other financial institution, rather than a group of financial institutions; thus
there may be a greater counterparty credit risk. Campbell & Company trades for
the Trust only with those counterparties which it believes to be creditworthy.
All positions of the Trust are valued each day on a mark-to-market basis. There
can be no assurance that any clearing member, clearinghouse or other
counterparty will be able to meet its obligations to the Trust.

DISCLOSURES ABOUT CERTAIN TRADING ACTIVITIES THAT INCLUDE NON-EXCHANGE TRADED
CONTRACTS ACCOUNTED FOR AT FAIR VALUE

The Trust invests in futures and forward currency contracts. The market value of
futures (exchange-traded) contracts is determined by the various futures
exchanged, and reflects the settlement price for each contract as of the close
of the last business day of the reporting period. The market value of forward
(non-exchange traded) contracts is extrapolated on a forward basis from the spot
prices quoted as of 5:00 P.M. (E.T.) of the last business day of the reporting
period.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

INTRODUCTION

Past Results Not Necessarily Indicative of Future Performance

         The Trust is a speculative commodity pool. The market sensitive
instruments held by it are acquired for speculative trading purposes, and all or
a substantial amount of the Trust's assets are subject to the risk of trading
loss. Unlike an operating company, the risk of market sensitive instruments is
integral, not incidental, to the Trust's main line of business.

         Market movements result in frequent changes in the fair market value of
the Trust's open positions and, consequently, in its earnings and cash flow. The
Trust's market risk is influenced by a wide variety of factors, including the
level and volatility of exchange rates, interest rates, equity price levels, the
market value of financial instruments and contracts, the diversification effects
among the Trust's open positions and the liquidity of the markets in which it
trades.

         The Trust rapidly acquires and liquidates both long and short positions
in a wide range of different markets. Consequently, it is not possible to
predict how a particular future market scenario will affect performance, and the
Trust's past performance is not necessarily indicative of its future results.

         Value at Risk is a measure of the maximum amount which the Trust could
reasonably be expected to lose in a given market sector. However, the inherent
uncertainty of the Trust's speculative trading and the recurrence in the markets
traded by the Trust of market movements far exceeding expectations could result
in actual trading or non-trading losses far beyond the indicated Value at Risk
or the Trust's experience to date (i.e., "risk of ruin"). Risk of ruin is
defined to be no more than a 5% chance of losing 20% or more on a monthly basis.
In light of the foregoing as well as the risks and uncertainties intrinsic to
all future projections, the inclusion of the quantification

                                      -18-

<PAGE>

included in this section should not be considered to constitute any assurance or
representation that the Trust's losses in any market sector will be limited to
Value at Risk or by the Trust's attempts to manage its market risk.

Standard of Materiality

         Materiality as used in this section, "Qualitative and Quantitative
Disclosures About Market Risk," is based on an assessment of reasonably possible
market movements and the potential losses caused by such movements, taking into
account the leverage, and multiplier features of the Trust's market sensitive
instruments.

QUANTIFYING THE TRUST'S TRADING VALUE AT RISK

Quantitative Forward-Looking Statements

         The following quantitative disclosures regarding the Trust's market
risk exposures contain "forward-looking statements" within the meaning of the
safe harbor from civil liability provided for such statements by the Private
Securities Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).
All quantitative disclosures in this section are deemed to be forward-looking
statements for purposes of the safe harbor, except for statements of historical
fact (such as the dollar amount of maintenance margin required for market risk
sensitive instruments held at the end of the reporting period).

         The Trust's risk exposure in the various market sectors traded by
Campbell & Company is quantified below in terms of Value at Risk. Due to the
Trust's mark-to-market accounting, any loss in the fair value of the Trust's
open positions is directly reflected in the Trust's earnings (realized or
unrealized).

         Exchange maintenance margin requirements have been used by the Trust as
the measure of its Value at Risk. Maintenance margin requirements are set by
exchanges to equal or exceed the maximum losses reasonably expected to be
incurred in the fair value of any given contract in 95%-99% of any one-day
intervals. The maintenance margin levels are established by dealers and
exchanges using historical price studies as well as an assessment of current
market volatility and economic fundamentals to provide a probabilistic estimate
of the maximum expected near-term one-day price fluctuation. Maintenance margin
has been used rather than the more generally available initial margin, because
initial margin includes a credit risk component which is not relevant to Value
at Risk.

         In the case of market sensitive instruments which are not
exchange-traded (which includes currencies in the case of the Trust), the margin
requirements for the equivalent futures positions have been used as Value at
Risk. In those cases in which a futures-equivalent margin is not available,
dealers' margins have been used.

         In the case of contracts denominated in foreign currencies, the Value
at Risk figures include foreign margin amounts converted into U.S. Dollars with
an incremental adjustment to reflect the exchange rate risk inherent to the
Dollar-based Trust in expressing Value at Risk in a functional currency other
than Dollars.

                                      -19-

<PAGE>

         In quantifying the Trust's Value at Risk, 100% positive correlation in
the different positions held in each market risk category has been assumed.
Consequently, the margin requirements applicable to the open contracts have
simply been aggregated to determine each trading category's aggregate Value at
Risk. The diversification effects resulting from the fact that the Trust's
positions are rarely, if ever, 100% positively correlated have not been
reflected.

THE TRUST'S TRADING VALUE AT RISK IN DIFFERENT MARKET SECTORS

         The following tables indicate the trading Value at Risk associated with
the Trust's open positions by market category as of June 30, 2003 and December
31, 2002 and the trading gains/losses by market category for the six months
ended June 30, 2003 and the year ended December 31, 2002. All open position
trading risk exposures of the Trust have been included in calculating the
figures set forth below. As of June 30, 2003 and December 31, 2002, the Trust's
total capitalization was approximately $31.2 million and $32.9 million,
respectively.

                                  JUNE 30, 2003

<TABLE>
<CAPTION>
                                   % OF TOTAL        TRADING
MARKET SECTOR   VALUE AT RISK    CAPITALIZATION    GAIN/(LOSS)*
-------------   -------------    --------------    ------------
<S>             <C>              <C>               <C>
Currencies      $ 1,065,000           3.41%          13.79%
Stock Indices   $   833,000           2.67%          (0.60)%
Interest Rates  $   693,000           2.22%           3.94%
Energy          $   142,000           0.46%           4.20%
Metals          $    63,000           0.20%          (0.51)%
Agricultural    $         0           0.00%           0.02%
                -----------           -----          -----

   Total        $ 2,796,000           8.96%          20.84%
                ===========           =====          =====
</TABLE>

* - Of the 16.21% return for the six months ended June 30, 2003, approximately
20.84% was due to trading gains (before commissions), approximately 0.58% was
due interest income offset by approximately 5.21% due to brokerage fees,
performance fees, and operating and offering costs borne by the Trust.

                                DECEMBER 31, 2002

<TABLE>
<CAPTION>
                                   % OF TOTAL        TRADING
MARKET SECTOR   VALUE AT RISK    CAPITALIZATION*    GAIN/(LOSS)**
-------------   -------------    --------------     -----------
<S>             <C>              <C>                <C>
Currencies      $   878,000         3.44%             5.81%
Energy          $   622,000         2.44%            (1.64)%
Interest Rates  $   382,000         1.50%            15.12%
Stock Indices   $   221,000         0.87%             3.58%
Metals          $    68,000         0.27%            (0.41)%
Agricultural    $    62,000         0.24%            (0.37)%
                -----------         ----             -----

   Total        $ 2,233,000         8.76%            22.09%
                ===========         ====             =====
</TABLE>

                                      -20-

<PAGE>

* - For the purposes of the above "% of Total Capitalization", additions and
redemptions as of December 31, 2002 were not included in the total
capitalization.

** - Of the 15.50% return for the year ended December 31, 2002, approximately
22.09% was due to trading gains (before commissions) and approximately 1.61% was
due to interest income, offset by approximately 8.20% due to brokerage fees,
performance fees and operating and offering costs borne by the Trust.

MATERIAL LIMITATIONS ON VALUE AT RISK AS AN ASSESSMENT OF MARKET RISK

         The face value of the market sector instruments held by the Trust is
typically many times the applicable maintenance margin requirement (maintenance
margin requirements generally ranging between approximately 1% and 10% of
contract face value) as well as many times the capitalization of the Trust. The
magnitude of the Trust's open positions creates a "risk of ruin" not typically
found in most other investment vehicles. Because of the size of its positions,
certain market conditions -- unusual, but historically recurring from time to
time -- could cause the Trust to incur severe losses over a short period of
time. The foregoing Value at Risk tables -- as well as the past performance of
the Trust -- give no indication of this "risk of ruin."

NON-TRADING RISK

         The Trust has non-trading market risk on its foreign cash balances not
needed for margin. However, these balances (as well as the market risk they
represent) are immaterial. The Trust also has non-trading market risk as a
result of investing a substantial portion of its available assets in U.S.
Treasury Bills. The market risk represented by these investments is immaterial.

QUALITATIVE DISCLOSURES REGARDING PRIMARY TRADING RISK EXPOSURES

         The following qualitative disclosures regarding the Trust's market risk
exposures -- except for (i) those disclosures that are statements of historical
fact and (ii) the descriptions of how the Trust manages its primary market risk
exposures -- constitute forward-looking statements within the meaning of Section
27A of the Securities Act and Section 21E of the Securities Exchange Act. The
Trust's primary market risk exposures as well as the strategies used and to be
used by Campbell & Company for managing such exposures are subject to numerous
uncertainties, contingencies and risks, any one of which could cause the actual
results of the Trust's risk controls to differ materially from the objectives of
such strategies. Government interventions, defaults and expropriations, illiquid
markets, the emergence of dominant fundamental factors, political upheavals,
changes in historical price relationships, an influx of new market participants,
increased regulation and many other factors could result in material losses as
well as in material changes to the risk exposures and the risk management
strategies of the Trust. There can be no assurance that the Trust's current
market exposure and/or risk management strategies will not change materially or
that any such strategies will be effective in either the short- or long-term.
Investors must be prepared to lose all or substantially all of their investment
in the Trust.

         The following were the primary trading risk exposures of the Trust as
of June 30, 2003, by market sector.

                                      -21-

<PAGE>

Currencies

         Exchange rate risk is the principal market exposure of the Trust. The
Trust's currency exposure is to exchange rate fluctuations, primarily
fluctuations which disrupt the historical pricing relationships between
different currencies and currency pairs. These fluctuations are influenced by
interest rate changes as well as political and general economic conditions. The
Trust trades in a large number of currencies, including cross-rates -- i.e.,
positions between two currencies other than the U.S. Dollar. Campbell & Company
does not anticipate that the risk profile of the Trust's currency sector will
change significantly in the future.

Interest Rates

         Interest rate risk is a significant market exposure of the Trust.
Interest rate movements directly affect the price of the sovereign bond
positions held by the Trust and indirectly the value of its stock index and
currency positions. Interest rate movements in one country as well as relative
interest rate movements between countries materially impact the Trust's
profitability. The Trust's primary interest rate exposure is to interest rate
fluctuations in the United States and the other G-7 countries. Additionally, the
Trust takes positions in the government debt of Switzerland. Campbell & Company
anticipates that G-7 interest rates will remain the primary market exposure of
the Trust for the foreseeable future. The changes in interest rates which have
the most effect on the Trust are changes in long-term, as opposed to short-term
rates. Most of the speculative positions held by the Trust are in medium- to
long-term instruments. Consequently, even a material change in short-term rates
would have little effect on the Trust were the medium- to long-term rates to
remain steady.

Stock Indices

         The Trust's primary equity exposure is to equity price risk in the G-7
countries and several other countries (Hong Kong, Spain and Taiwan). The stock
index futures traded by the Trust are by law limited to futures on broadly based
indices. As of June 30, 2003, the Trust's primary exposures were in the FTSE
(U.K.), DAX (Germany), NASDAQ (USA), IBEX (Spain), Euro STOXX 50, Hang Seng
(Hong Kong), Nikkei (Japan), and S&P 500 (USA) stock indices. The Trust is
primarily exposed to the risk of adverse price trends or static markets in the
major U.S., European and Japanese indices. (Static markets would not cause major
market changes but would make it difficult for the Trust to avoid being
"whipsawed" into numerous small losses.)

Energy

         The Trust's primary energy market exposure is to gas and oil price
movements, often resulting from political developments and ongoing conflicts in
the Middle East. As of June 30, 2003, crude oil, heating oil and natural gas are
the dominant energy market exposures of the Trust. Oil and gas prices can be
volatile and substantial profits and losses have been and are expected to
continue to be experienced in this market.

Metals

         The Trust's metals market exposure is to fluctuations in the price of
aluminum, copper, gold, nickel and zinc. The risk allocation to the metal sector
has not exceeded 3% of the Trust's portfolio during the six months ended June
30, 2003.

                                      -22-

<PAGE>

QUALITATIVE DISCLOSURES REGARDING NON-TRADING RISK EXPOSURE

         The following were the only non-trading risk exposures of the Trust as
of June 30, 2003.

Foreign Currency Balances

         The Trust's primary foreign currency balances are in Japanese Yen,
British Pounds and Euros. The Trust controls the non-trading risk of these
balances by regularly converting these balances back into dollars (no less
frequently than twice a month, and more frequently if a particular foreign
currency balance becomes unusually large).

Treasury Bill Positions

         The Trust's only market exposure in instruments held other than for
trading is in its Treasury Bill portfolio. The Trust holds Treasury Bills
(interest bearing and credit risk-free) with durations no longer than six
months. Violent fluctuations in prevailing interest rates could cause immaterial
mark-to-market losses on the Trust's Treasury Bills, although substantially all
of these short-term investments are held to maturity.

QUALITATIVE DISCLOSURES REGARDING MEANS OF MANAGING RISK EXPOSURE

         The means by which Campbell & Company attempts to manage the risk of
the Trust's open positions is essentially the same in all market categories
traded. Campbell & Company applies risk management policies to its trading which
generally limit the total exposure that may be taken per "risk unit" of assets
under management. In addition, Campbell & Company follows diversification
guidelines (often formulated in terms of the balanced volatility between markets
and correlated groups), as well as imposing "stop-loss" points at which open
positions must be closed out.

         Campbell & Company controls the risk of the Trust's non-trading
instruments (Treasury Bills held for cash management purposes) by limiting the
duration of such instruments to no more than six months.

GENERAL

The Trust is unaware of any (i) anticipated known demands, commitments or
capital expenditures; (ii) material trends, favorable or unfavorable, in its
capital resources; or (iii) trends or uncertainties that will have a material
effect on operations. From time to time, certain regulatory agencies have
proposed increased margin requirements on futures contracts. Because the Trust
generally will use a small percentage of assets as margin, the Trust does not
believe that any increase in margin requirements, as proposed, will have a
material effect on the Trust's operations.

                                      -23-

<PAGE>

Item 4.  Controls and Procedures

         Campbell & Company, Inc., the managing owner of the Trust, with the
participation of the managing owner's Chief Executive Officer and Chief
Financial Officer, has evaluated the effectiveness of the design and operation
of its disclosure controls and procedures with respect to the Trust within 90
days of the filing date of this quarterly report, and, based on their
evaluation, have concluded that these disclosure controls and procedures are
effective. There were no significant changes in the managing owner's internal
controls with respect to the Trust or in other factors applicable to the Trust
that could significantly affect these controls subsequent to the date of their
evaluation.

                                      -24-

<PAGE>

                            PART II-OTHER INFORMATION

Item 1.  Legal Proceedings.

         None

Item 2.  Changes in Securities and Use of Proceeds

         None

Item 3.  Defaults Upon Senior Securities

         Not applicable.

Item 4.  Submissions of Matters to a vote of Security Holders.

         None

Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K.

         (a)      Exhibits

         Exhibit Number                      Description of Document

              31.01           Certification of Bruce L. Cleland, Chief Executive
                              Officer, pursuant to Rules 13a-14 and 15d-14 of
                              the Securites Exchange Act of 1934.

              31.02           Certification of Theresa D. Becks, Chief Financial
                              Officer, pursuant to Rules 13a-14 and 15d-14 of
                              the Securites Exchange Act of 1934.

              32.01           Certification of Bruce L. Cleland, Chief Executive
                              Officer, pursuant to 18 U.S.C. Section 1350, as
                              enacted by Section 906 of The Sarbanes-Oxley Act
                              of 2002.

              32.02           Certification of Theresa D. Becks, Chief Financial
                              Officer, pursuant to 18 U.S.C. Section 1350, as
                              enacted by Section 906 of The Sarbanes-Oxley Act
                              of 2002.

         (b)      Reports of Form 8-K

                  None

                                      -25-

<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                             CAMPBELL ALTERNATIVE ASSET TRUST
                             (Registrant)

                                  By: Campbell & Company, Inc.
                                      Managing Owner

Date: August 12, 2003             By: /s/ Theresa D. Becks
                                      ---------------------
                                      Theresa D. Becks
                                      Chief Financial Officer/Treasurer/Director

                                      -26-

<PAGE>

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit Number                           Description of Document                              Page Number
--------------                           -----------------------                              -----------
<S>                            <C>                                                            <C>
    31.01                      Certification by Chief Executive Officer                           E 2
    31.02                      Certification by Chief Financial Officer                           E 3
    32.01                      Certification by Chief Executive Officer                           E 4
    32.02                      Certification by Chief Financial Officer                           E 5
</TABLE>

                                      E1